Government Subsidy for Consumer Loans Arrives, Banks Rush to Set Up Training to Ensure Seamless Implementation
Shanghai Securities Times reporter, Xie Zhongxiang, Liu Xiaoyu
The "government subsidy" for consumer loans has officially taken shape. According to our reports from multiple banking institutions, many branches have received notifications from their headquarters and will soon launch comprehensive training programs to ensure the rapid implementation of this policy.
On August 12th, the "Implementation Plan for the Interest Rate Support Policy for Consumer Loans" was officially published. In response, six major state-owned banks and relevant shareholders have swiftly responded, indicating their commitment to actively follow up on implementing the relevant policies.
Individual consumers can receive a maximum subsidy of 3,000 yuan
According to the new policy, starting from September this year and for a period of one year, all personal consumer loans (excluding credit card services) that meet certain conditions will be eligible for interest rate support. This includes small-scale consumption loans for daily expenses as well as larger-scale loans for purchases such as cars, home appliances, or electronics.
The implementation plan specifies a maximum annual interest rate of 1% (based on the actual principal amount used for consumer spending) and a maximum cumulative subsidy of 3,000 yuan (based on the total consumption amount). For example, if an individual consumer uses personal consumer loans to purchase home appliances, electronics, or other goods worth 20,000 yuan within the policy period, they would theoretically be able to enjoy interest rate support of around 2%.
Key conditions for corporate borrowers include using loan funds for business operations, specifically including food and beverages, healthcare, elderly care, childcare, home services, entertainment, travel, sports, and other consumer sectors.
For instance, a restaurant could borrow 90 million yuan from a bank to purchase equipment and expand its premises, and would be eligible for an interest rate subsidy of around 9,000 yuan within the policy period.
To apply for these loans, individual consumers and corporate borrowers will need to follow certain procedures. As explained by a personal loan manager at a Guangfa Bank branch in East China, "For existing customers who have signed up for loans that meet the conditions, they can check their eligibility for interest rate support through SMS or mobile apps without needing to take any additional action."
Banks will soon launch training programs
The implementation plan has listed a total of 23 financial institutions, including six major state-owned banks, 12 national-level shareholding banks, and five other institutions. Following the release of this policy, China Construction Bank (601988), Industrial Bank, Postal Savings Bank, Bank of Communications, China Merchant Bank, Guangfa Bank, and other institutions have all swiftly responded.
The Chinese government has officially announced that it will offer interest rate support to borrowers through financial institutions. This policy is expected to boost consumer confidence, ease the financial pressure on small and medium-sized enterprises (SMEs), and promote the development of service industries.
According to a research report from China Securities Co., Ltd., this policy will break through traditional credit stimulus models that rely solely on interest rate cuts, by providing financial support to banks. This approach will not only reduce the actual borrowing costs for borrowers but also stabilize bank interest rates.
As emphasized by a researcher at China Securities Co., Ltd., "This policy will stimulate effective loan demand from individual consumers and corporate borrowers, expand consumer credit, and promote economic growth."